Prudential Regulation Authority Rulebook

6.1

This Chapter applies only to the FSCS.

6.2

The FSCS may treat persons who are or who may be entitled to claim compensation in respect of a protected dormant account as if they had done so.

6.3

The FSCS may also pay compensation (and any recovery or other amount payable by the FSCS to the claimant) to a person who makes a protected dormant account claim on behalf of another person if the FSCS is satisfied that the person on whose behalf the claim is made:

1. (1) is or would have been an eligible claimant; and
2. (2) would have been paid compensation by the FSCS had he been able to make the claim himself, or to pursue his application for compensation further.

6.4

The FSCS must pay any compensation to the claimant, with the following exceptions:

1. (1) where the claimant directs that any compensation be paid to another person, the FSCS may pay compensation as directed by the claimant;
2. (2) where the claimant is not absolutely entitled to the protected dormant account:
1. (a) if another person is absolutely entitled to the protected dormant account, that person is the person entitled to compensation in respect of the protected dormant account, and accordingly the FSCS must pay any compensation to the person who is absolutely entitled to the protected dormant account, provided that the person has been identified or is identifiable before the compensation date; and
2. (a) if no person is absolutely entitled to the protected dormant account, the FSCS must pay any compensation in accordance with such of 6.5 – 6.8 as applies.

6.5

If a person is:

1. (1) a trustee (other than a bare trustee); or
2. (2) the operator of, or the person carrying on the regulated activity of winding up, a stakeholder pension scheme (which is not an occupational pension scheme) or personal pension scheme,

the FSCS must treat their entitlement to compensation in this capacity as separate from their entitlement to compensation in any other capacity, as if the two entitlements were held by different persons.

6.6

If a protected dormant account is held:

1. (1) for the trustees of a small self-administered scheme, an occupational pension scheme of micro, small or medium sized enterprise, or the trustee or operator of, or the person carrying on the regulated activity of winding up, a stakeholder pension scheme (which is not an occupational pension scheme) or personal pension scheme, or
2. (2) for one or more members of a pension scheme (or, where relevant, the beneficiary of any member) whose benefits are money-purchase benefits;

the FSCS must treat the member or members (or, where relevant, the beneficiary of any member) separately as persons entitled to receive compensation.

6.7

If any group of persons are:

1. (1) co-trustees (other than bare co-trustees); or
2. (2) operators of, or persons carrying on the regulated activity of winding up, a stakeholder pension scheme (which is not an occupational pension scheme) or a personal pension scheme,

(or any combination thereof), the FSCS must treat them as a single and continuing person distinct from the persons who may from time to time be the trustees, or the operators or persons winding up the relevant pension scheme.

6.8

Where the same person is:

1. (1) trustee for different trusts or for different stakeholder pension schemes (which are not occupational pension schemes) or personal pension schemes; or
2. (2) the operator of, or the person carrying on the regulated activity of winding up, different stakeholder pension schemes (which are not occupational pension schemes) or personal pension schemes,

the FSCS shall treat that person’s entitlement to compensation in respect of each of these trusts or schemes as if they were entitlements of a different person.

6.9

Where any of the provisions of 6.5, 6.7 or 6.8 apply, the FSCS must try to ensure that any amount paid to:

1. (1) the trustee; or
2. (2) the operator of, or the person carrying on the regulated activity of winding up, a stakeholder pension scheme (which is not an occupational pension scheme) or personal pension scheme
3. is, in each case:
4. (3) for the benefit of members or beneficiaries whose own deposits would be eligible deposits if they were held by a DGS member; and
5. (4) no more than the amount of the loss suffered by those members or beneficiaries.

6.10

Where a person holds a protected dormant account as the personal representative of another or on behalf of another, the FSCS must treat the personal representative or the person acting on behalf of another in respect of that protected dormant account as if they were standing in the shoes of that other person.

6.11

In applying this Chapter to protected dormant accounts held with a branch outside the United Kingdom of a dormant account fund operator, the FSCS must interpret references to:

1. (1) persons entitled as personal representatives, trustees, bare trustees, operators of pension schemes or persons carrying on the regulated activity of winding up pension schemes; or
2. (2) persons having a joint account or joint interest in a deposit or carrying on business in partnership,

as references to persons entitled, under the law of the relevant country or territory, in a capacity appearing to the FSCS to correspond as nearly as may be to that capacity.